Tesla, the U.S. based electric vehicle manufacturer, has reportedly canceled its plans to establish a factory in Thailand. Instead, Tesla will focus on developing charging stations, according to a report by Thailand's news portal, The Nation, on August 7.
An unnamed government source revealed that this suspension not only applies to Thailand but also to Malaysia and Indonesia. After disbanding its executive team, Tesla decided to cancel its investment plans in Thailand, marking a broader withdrawal of investments from the Asia region, according to the report.
Meanwhile, Tesla is now concentrating on the development of charging stations. The report also noted that Tesla will not proceed with plans to build factories in Malaysia, Indonesia, or any other locations except for China, the United States, and Germany.
According to The Business Times, a day after the news of Tesla's plan cancellation in Thailand emerged, the Thailand Board of Investment (BOI) announced its approval of a 1 billion baht (S$37.5 million) investment from Hyundai Motor Company. The South Korean automaker plans to establish a facility in Thailand to assemble electric vehicles (EVs) and batteries, with operations set to begin in 2026.
Malaysia Denies, No Official Comment from Tesla Yet
In response to the report from The Nation, Malaysia's Ministry of Investment, Trade, and Industry (MITI) clarified on August 8 that the report was not an official statement from Tesla. MITI emphasized that the global business decisions of multinational companies would not affect industrial reforms or the investment climate in Malaysia.
According to The Business Times, Tesla has been contacted for comment, but there has been no official response from Tesla or Thai officials so far.
In July 2023, Tesla committed to opening its headquarters and service center in Selangor, Malaysia. Prime Minister Anwar Ibrahim stated that this investment would create tens of thousands of high-value jobs.
Under a February 2023 agreement, Tesla was allowed to sell imported vehicles without import duties and was exempted from the requirement of a local partner and the 30% Bumiputera equity condition.
Amid stiff competition from Chinese and South Korean companies, Tesla faces significant challenges in Southeast Asia, particularly in Thailand, which is the largest automotive manufacturing hub in ASEAN.
